The D7 visa route, what changed when NHR ended, and what a retired couple actually spends per month.
Portugal still draws more foreign retirees than almost anywhere else in Europe, but the picture has shifted in the last two years. The old tax break for pensioners is gone, and the visa income bar moves every year with the minimum wage. Here's the route, the real tax position, and what it actually costs to live well.
The D7 visa route
The D7 is the standard residency route for retirees and anyone living on passive income rather than local employment. For 2026 the minimum is €920 a month for a single applicant, plus 50% more for a spouse (€460/month) and 30% per dependent child (€276/month) — the threshold is tied to the Portuguese minimum wage, so it rises each year. Qualifying income includes pensions, rental income, dividends and similar passive sources; you also need to show roughly a year's worth of that income already sitting in savings. The D7 doesn't let you work locally, which is irrelevant for most retirees but worth knowing if you planned on consulting work on the side.
What changed when NHR ended
Portugal's old Non-Habitual Resident regime taxed foreign pension income at a flat 10% — that benefit is gone. It closed to new applicants after 31 March 2025 and was replaced by IFICI, a narrower regime aimed at researchers and tech professionals in eligible activities, taxed at a 20% flat rate on employment income. Pension income is explicitly excluded from IFICI. In practice, a retiree who becomes a Portuguese tax resident today pays standard progressive IRS rates on worldwide pension income — rates that run from roughly 13% up to 48% at the top end, a real step up from the old 10% flat rate. Anyone who planned their move around the old NHR pension deal needs to re-run the numbers, and a tax treaty between Portugal and your home country may still reduce double taxation — check this with an adviser before relocating, not after.
What it actually costs
A retired couple can live comfortably in the interior or eastern Algarve (towns like Silves, Loulé, Tavira or Olhão) on roughly €1,500–2,500 a month; the same lifestyle in Lisbon, Porto, or the busiest coastal Algarve towns (Lagos, Albufeira, Vilamoura) runs closer to €1,900–3,200. A representative monthly budget: rent for a two-bedroom apartment €800–1,250, utilities €110–170, groceries €320–400, dining out €180–250, transport €60–110 and health insurance €140–260 — totalling roughly €1,600–2,460 before any travel or one-off costs.
Healthcare
The D7 application itself requires proof of private health insurance. Once you hold Portuguese residency you can register with the public SNS system at a local health centre, but many retirees keep a private policy running alongside it for faster specialist access and shorter waits — budget for both in your first year rather than assuming the public system alone covers you from day one.
Where retirees settle
The Algarve remains the default choice for English-speaking retirees — established expat communities, direct flights home, and a wide spread of price points from Tavira's calmer east to Lagos and Albufeira's busier resorts. The Silver Coast (Peniche, Nazaré, Óbidos) offers Algarve-adjacent lifestyle at roughly half the price. See our broader guide to Portugal's best areas for more detail on each region.
FAQ
How much income do I need for the D7 visa? €920/month for a single applicant in 2026, plus 50% for a spouse and 30% per child, rising each year with the minimum wage. Will my pension be taxed at Portugal's old low NHR rate? No — NHR closed to new applicants in March 2025; pension income is now taxed at standard progressive rates, typically 13–48%. Can I use NHR's replacement, IFICI, to protect my pension? No — IFICI explicitly excludes pension income; it targets specific professional activities. How much does a retired couple really spend per month? Roughly €1,500–2,500 in quieter interior/eastern Algarve towns, €1,900–3,200 in Lisbon, Porto or the busiest coastal resorts. Do I need private health insurance? Required to get the D7 visa, and worth keeping even after you can register with the public SNS system.
How we help
We help you weigh the real after-tax picture against specific towns and properties, and connect you with immigration lawyers and tax advisers who can confirm your numbers before you commit. Informational only, not immigration or tax advice — thresholds and rules change annually; confirm current figures for your situation with a qualified professional.